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55m ago

Judge Weighs Lisa Cook’s Bid to Block Firing From Federal Reserve Board

The case tests whether a president can remove a Fed governor for alleged pre-confirmation conduct under the statute’s “for cause” standard.

Lisa Cook testifies before a Senate Banking Committee hearing on her nomination to be a member of the Federal Reserve Board of Governors (for a second term), on Capitol Hill in Washington on June 21, 2023.
Federal Reserve Board of Governors member Lisa Cook listens during an open meeting of the Board of Governors at the Federal Reserve in Washington, DC, on June 25, 2025.
Federal Reserve Governor Lisa Cook attends the Federal Reserve Bank of Kansas City's 2025 Jackson Hole economic symposium, "Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy" in Jackson Hole, Wyoming, U.S., August 23, 2025. REUTERS/Jim Urquhart/File Photo
FILE - Federal Reserve Chairman Jerome Powell, left, talks with Board of Governors member Lisa Cook, right, during an open meeting of the Board of Governors at the Federal Reserve, June 25, 2025, in Washington. (AP Photo/Mark Schiefelbein, File)

Overview

  • U.S. District Judge Jia M. Cobb heard initial arguments Friday on Cook’s request for an emergency order and set an expedited schedule, with additional briefing due next week and no ruling yet.
  • Cook seeks a temporary injunction to remain on the seven-member board while she challenges President Trump’s attempt to remove her over 2021 mortgage-related allegations.
  • The Justice Department urged highly deferential review of the president’s decision and said Cook has offered no explanation for the allegations, while Trump asked the court to allow her removal immediately.
  • FHFA Director Bill Pulte announced a second criminal referral regarding a third property as part of the accusations, though no criminal charges have been filed.
  • The Federal Reserve told the court it will not argue Cook’s motion and requested a prompt ruling, and analysts note the outcome could shift the board’s balance and affect the central bank’s independence.